The June 2024 SSDI payment increase explained

In June 2024, Social Security Disability Insurance (SSDI) payments rose by 3.2 percent. This increase applied to all beneficiaries receiving SSDI that month, regardless of age or the reason for their disability. The raise came from the annual Cost of Living Adjustment (COLA), which Social Security calculates each October based on inflation data from the prior nine months.

The 3.2 percent figure was the same COLA that took effect in January 2024 for all Social Security beneficiaries — both those on retirement and those on disability. Because SSDI payments are tied to the same COLA as retirement benefits, the June increase was not a separate event but part of the regular annual adjustment cycle. If you were receiving SSDI in January 2024, your June payment reflected the same 3.2 percent boost you saw then.

Key Takeaways

  • The 3.2 percent increase in June 2024 was the annual COLA, the same adjustment that took effect in January 2024 for all SSDI recipients.
  • COLA is calculated by Social Security each October and is based on inflation measured over the prior nine months; it applies automatically with no action needed from you.
  • The increase affected your full monthly payment amount, which then determines how much Medicare premiums, Medicaid copays, and work incentive thresholds change for the rest of the year.
  • If you did not see the increase in your June payment, contact Social Security to verify your account, as errors in payment processing are rare but do occur.

How COLA is calculated and why it matters

Social Security calculates COLA using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), a measure of inflation published by the Bureau of Labor Statistics. In October of each year, Social Security compares the average CPI-W for July, August, and September of that year to the same three-month average from the prior year. If inflation has occurred, the percentage increase becomes the COLA for the following year.

The 3.2 percent COLA for 2024 reflected the inflation that occurred between late 2022 and late 2023. Because inflation was higher during that period than it had been in prior years, the 2024 COLA was larger than the 2023 COLA (which was 8.8 percent) and larger than the 2022 COLA (which was 5.9 percent). The COLA for 2025, announced in October 2024, was 2.5 percent — lower than 2024 because inflation had slowed.

COLA matters because it is the only automatic way your SSDI payment grows. Congress does not vote on annual raises for SSDI beneficiaries; instead, the adjustment happens by formula each January and is reflected in your June payment as well. If inflation is zero or negative, COLA can be zero, and your payment stays the same.

What the increase meant for your other benefits

When your SSDI payment increased in June 2024, several connected programs adjusted automatically. If you were receiving Supplemental Security Income (SSI) in addition to SSDI, your SSI payment also increased by 3.2 percent. If you were on Medicare because of your SSDI status, your Part B premium (for doctor visits and outpatient care) was recalculated based on your new SSDI amount.

For beneficiaries in Medicaid, the increase in your SSDI payment could affect your Medicaid status depending on your state's rules. Some states use your SSDI amount to determine whether you remain Medicaid-may be able to access; a higher payment might push you above the income limit in those states, though most states have protections to prevent loss of Medicaid when COLA increases occur. If you receive Medicaid and were concerned about the change, your state Medicaid office should have sent you a notice.

If you were using work incentives such as the Student Earned Income Exclusion or the Plan to Achieve Self-Support (PASS), the income thresholds for those programs also adjusted. For example, the earnings limit for the Student Earned Income Exclusion increased, allowing student beneficiaries to earn more before it affected their SSDI payment.

Why you see the increase in June, not January

Social Security announces COLA in October and implements it in January, but your payment stub may not show the full increase until June. This timing exists because Social Security processes payments in arrears — the payment you receive on the third of each month covers benefits for the prior month. Your January 2024 payment (received in early February) covered January benefits, which included the 3.2 percent increase. Your June 2024 payment (received in early July) also reflected the 3.2 percent increase.

The reason many beneficiaries notice the increase more in June is that by then, six months of the higher payment have accumulated, making the change more visible. Some beneficiaries also receive a separate notice from Social Security in May or June confirming the new payment amount, which draws attention to the change. If you did not see a notice, you can log into your my Social Security account online or call Social Security at 1-800-772-1213 to verify your current payment amount.

If your payment did not increase

In rare cases, a beneficiary's payment did not increase in June 2024 even though COLA was applied. This can happen if your case was under review, if you had a work-related event that reduced your payment, or if you reached full retirement age and your SSDI converted to retirement benefits (which have different payment rules). It can also occur if you were newly approved for SSDI after January 2024; your first payment is based on your benefit calculation at approval, not on the prior year's amount.

If you believe your payment should have increased and did not, the first step is to verify the amount Social Security shows in your account. Log into my Social Security or call 1-800-772-1213 and ask a representative to review your payment history for January through June 2024. They can tell you whether COLA was applied and, if not, why. If an error occurred, Social Security can correct it and issue a back payment.

How COLA affects your taxes and work incentives

The 3.2 percent increase in your SSDI payment affects how much of your benefits may be subject to federal income tax. If you have other income (such as wages from work or interest), a higher SSDI payment can push you over the threshold at which Social Security benefits become taxable. The threshold depends on your filing status and other income, but for a single filer in 2024, benefits could become taxable if your combined income (SSDI plus half your SSDI plus other income) exceeded $25,000.

For beneficiaries using work incentives, the higher SSDI payment also means higher thresholds for programs like Impairment Related Work Expenses (IRWE) and Plans to Achieve Self-Support (PASS). These programs allow you to set aside income or expenses to reduce the amount of your earnings that counts against your SSDI payment. Because the thresholds are tied to your benefit amount, they increased in June 2024 as well, giving you more room to work and earn.

Looking ahead: COLA for 2025 and beyond

The COLA for 2025 was announced in October 2024 as 2.5 percent, lower than the 3.2 percent from 2024. This adjustment took effect in January 2025 and will be reflected in your June 2025 payment. The 2.5 percent figure reflects slower inflation in 2024 compared to 2023. Future COLA amounts depend on inflation in the months ahead and cannot be predicted with certainty, though Social Security publishes estimates each year.

If you want to track COLA announcements and understand how they affect your payment, Social Security publishes the annual COLA in a press release each October. You can also sign up for email alerts through my Social Security or check the Social Security website directly. Knowing the COLA in advance helps you plan your budget for the following year.

Frequently Asked Questions

Why did my June payment increase if I already got a raise in January?

You did receive the increase in January — your January payment included the 3.2 percent COLA. Your June payment also includes it because COLA is permanent; it does not expire after one month. Every payment you receive going forward will reflect the higher amount unless Congress changes the law or your case circumstances change.

Can I refuse the COLA increase if it affects my Medicaid?

No, COLA is automatic and cannot be refused. However, most states have protections called "Medicaid Continuation" that prevent you from losing Medicaid solely because of a COLA increase. If you are concerned about your Medicaid status, contact your state Medicaid office before your payment increases to understand your specific situation.

What if I think Social Security calculated COLA wrong?

COLA is calculated by formula using published inflation data, so errors are extremely rare. If you believe your payment amount is incorrect, contact Social Security at 1-800-772-1213 or visit your local office with a recent payment stub. A representative can review your account and explain how your payment was calculated.

Does the June increase explore to my spouse's benefits too?

If your spouse receives benefits on your SSDI record (such as a spouse or child benefit), their payment also increased by 3.2 percent in June 2024. COLA applies to all beneficiaries on a worker's record, not just the worker themselves.

How do I know what my new payment amount is?

Log into my Social Security at ssa.gov, call 1-800-772-1213, or check your payment stub or bank deposit amount. Social Security should have sent you a notice in May or June 2024 showing your new payment amount, though not all beneficiaries receive a printed notice every year.